BDR is more expensive than traditional Backup? MSP says No

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Managed services providers (MSPs) selling backup and disaster recovery (BDR) solutions may run into a common concern regarding price with customers. Many may say that BDR is too expensive compared to traditional backup, but is that really the case?

Watson told MSPmentor that MSPs should allow customers to "look at the true cost of the solution and use their own numbers."

Managed services providers (MSPs) selling backup and disaster recovery (BDR) solutions may run into a common concern regarding pricing with customers. Many may say that BDR is too expensive compared to traditional backup, but is that really the case? BlackPoint IT Services CEO James Watson spoke with us on this particular topic to clear any BDR pricing rumors in this MSPmentor exclusive.

Watson told MSPmentor that MSPs should allow customers to "look at the true cost of the solution and use their own numbers."

This approach enables customers to choose the option that makes the most sense for them and allows them to overcome their own objections and concerns.

He said that just because traditional backup software and maintenance may run a lot less than a BDR solution, it does not mean the BDR solution is more expensive.

Traditional software and tape typically has a higher failure rate

"What are the costs of maintaining and checking both systems?" he asked. "What is the cost in the event of an outage to bring the system back online, and what are the costs in downtime when the systems are not functioning?"

For instance, traditional software and tape often have a much higher failure rate than BDR solutions, Watson said. These older systems need to be checked regularly. Just two hours a week can add up to 104 hours per year.

"At a burdened cost of $30 per hour, this comes to a little over $3,000," he said. "This does not even add in quarterly test restores that could take up to 10 hours per server if they are ever done."

The real cost of disaster is lost business. Period.

Recovering data takes a lot more time when customers are using tape or traditional backup, Watson explained.

"Even if the probability is low the cost of a disaster and recovering the data can be high and amount to over 40 hours for a small sized company when they are using tape or a traditional backup," he said. "This compared to the always on reliability of a BDR solution can save 38 of those 40 hours in a minor disaster."

Watson added that the loss of business is the real cost of disaster. A customer can be up and running within hours with a BDR solution, instead of days with traditional backup.